II. FY2016 Interim and Beyond

Transcription

1 Material for FY2016 Second Quarter Financial Results Briefing Nov 2016 TADANO Ltd. Content I. Basic Business Vision & Mid-Term Management Plan pp II. FY2016 Interim and Beyond pp.17-27

2 I. Basic Business Vision & Mid-Term Management Plan 1 1. Business Domain 1948 Tadano Ltd. established 1955 Developed Japan s first hydraulic truck crane Current Business Domain: Lifting Equipment (LE) Industry 2

3 2. Corporate Philosophy 3 3. Vision Pursuing Further Excellence for the World and the Future. 4

4 4. Core Values 5 5. Long-Term Goals No.1 worldwide in the LE Industry Outside Japan Sales Ratio: 80% Company with stable and high profitability (Constant 20% Operating Income ratio) 6

5 6. LE industry From the perspective of demographics, LE is a GROWTH INDUSTRY Both the LE industry and Tadano have big potential Uptrends in the long term However, in the mid- and short-term, demand is volatile Volatile Up-Down Trends 7 7. Self-Support Effort (The Red Arrow) Market Demand Exchange rate Self-Support Effort Investment New Plant M & A Performance 8

6 8. Crane Characteristics Complicated, Difficult : Number of parts: Many Process Accuracy: High Demand Fluctuation: Parts Sales Ratio: Used Machine Value: Volatile Low High 9 9. Trends in Demand Units 250,000 Excavator Units 12,000 Mobile Crane 10, ,000 8, ,000 6, ,000 4,000 50,000 2, (forecast) (forecast) Demand for Excavator Demand for Mobile Crane Based on Tadano research. Mobile cranes produced in China and Russia are excluded 10

7 10. Parts Sales Ratio Consolidated) FY2014 FY2015 FY2016.2Q Komatsu 19.6% 21.4% 22.1% HCM 21.4% 23.2% 23.3% TADANO 6.3% 6.3% 6.4% 11. Manufacturer With Four Synergistic Strengths *HCM: Hitachi Construction Machinery 11 Product Competitiveness Product Quality CS Capability Used Crane Value Competitiveness that can be attained after a long-term effort A manufacturer with four synergistic strengths! 12

8 12. Mid-Term Management Plan (14-16) Basic Policy Becoming a Stronger Company A Stronger company means being able to continuously do the following 2 things even if demand were to fall by half in the next fiscal year: Mid-Term Management Plan (14-16) 14

9 14. Mid-Term Management Plan (14-16) Seven Strategies Enhance volume & quality in Core Market, Expand volume in Strategic Market Provide No.1 products and expand our sales lineup Pursue global & flexible MONOZUKURI Provide Outstanding Quality & Service Improve life-cycle value of our products Raise profitability level Strengthen the TADANO group & global management structure Mid Term Management Plan (14-16)Target and Results Management Targets FY2014 FY2015 FY2016 Forecast Sales 220.0billion 204.0billion 209.4billion 180.0billion Inside Japan 88.0billion 100.5billion 104.9billion 102.0billion Outside Japan 132.0billion 103.5billion 104.4billion 78.0billion Outside Japan Ratio Operating Income Operating Income Ratio Inventory Turnover Ratio 60.0% 50.7% 49.9% 43.3% 30.0billion 29.4billion 31.0billion 18.0billion 13.6% 14.4% 14.8% 10.0% ROA 13.0% 13.9% 13.5% 7.7% 16

10 FY2016 nterim and Beyond FY2016 Interim Japanese Market: Stable Outside the Japanese Market: Market peak in FY2012 Demand has been decreasing for three consecutive fiscal years (starting in FY2013) Demand decreased further in FY2016 Tadano s market share is up Up through FY2015 Tadano s revenues and profits reached record highs for three consecutive fiscal years. However, in the first half of FY2016, we posted decrease in revenues and profits for the first time in six years. 18

11 2. FY2016 & FY2017 Current Outlook: Severe conditions for next two years Japanese Market: Stable (High plateau through FY2018. Decline expected from FY2019) Markets Outside Japan: Severe (Decline through FY2017. Recovery expected from FY2018) We seek to improve our market position outside of Japan while we continue to benefit from favorable conditions within the Japanese market FY2017 results will be on par with those of FY2016 The external market environment is unclear, but we expect to maintain sales and profits at or above the FY2007 levels (record highs at the time) that preceded the Lehman Shock Comparing FY2007 and FY2016 FY2007 FY2016 Forecast Sales Inside Japan Outside Japan 174.3billion 92.8billion 81.5billion 180.0billion 102.0billion 78.0billion Operating Income 17.9billion 18.0billion World Demand Japan fiscal year base Outside Japan calendar year base Share inside Japan Share outside Japan 10,204Units 2,458Units 7,746Units 51.3% 14.1% 6,390Units 2,300Units 4,090Units 49.3% 25.9% Exchange Rate USD

12 Tadano Up Until Now Tadano From Here on Out 21 5.Trends in Net Sales and Operating Profit Ratio Net sales (Millions of yen) 250,000 Operating profit ratio 25.0% 200, % 150, % 100, % 50, % 0 0.0% FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 (forecast) %

13 6. Blue Arrow and Red Arrow Units Blue Arrow Total demand Exchange rate Yen Red Arrow Share Operating profit ratio Share Profit ratio 14, ,000 Exchange rate(usd/yen) 120 Share in Japan 50% 10, % 8, % 6, % 4, Share outside Japan 2, % ( forecast) (forecast) Demand in Japan Demand outside Japan Operating profit ration 5 year-moving average 10% 23 7.Trends in Demand and Share Units Japan Outside Japan Share 10,000 50% 8,000 40% 6,000 30% 4,000 20% 2,000 10% (forecast) 0% (forecast) 24

14 8. Next Mid Term Management Plan Next Mid -Term Management Plan Under development Mid-Term Target FY2022 Mid-Term Target for achieving Long-Term Goals Sales 300billion Inside Japan 100billion Outside Japan 200billion Operating Income 50billion Operating income rate 16.7% 26

15 10. Strategies In order to Become a Manufacturer with Four Synergistic Strengths Establish more sales, parts, and service locations Enhance our Used Crane Operation Establish a new plant M&A 2 companies Further increase for rough terrain crane (RC) market share There are growth opportunities in all terrain crane (AC) and truck crane (TC) markets -AC: Establish stronger foundation over next 2 years, then begin increasing share from FY2018 -TC: Re-establish TC strategy and start to expand sales from FY2017 Increase truck loader crane sales outside of Japan Expand solution-based business through information and communication technology 27 Pursuing Further Excellence for the World and the Future. 28

16 Safety First!! Glück auf!! 29